Re: Personal Bankruptcy of S corp officer

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Homework????? It is a construction business.

Or do you mean is this a homework question? No it is my
husband and I am concerned he(we) will pay for his partner's
debt. The partner takes weekly draws in addition to a salary
and cannot make it through the week without borrowing more.

On 8/24/05, 00 wrote:
> Homework?
>
> On 8/24/05, E ryan wrote:
>> The s corp has two officers each own 50&37; of the stock.
> One
>> officer has excessive personal debt not related to the
>> business. If this officer files for personal bankruptcy
> or
>> creditors begin to take collection action is the S corp
>> cash in danger. For example if there is $60,000 in cash
> in
>> the S corp bank account (both officers can write checks)
>> would any, all of this money be required to pay off
>> personal debts of the one officer?